Interesting article about Oil

wanghong

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% J1 D& ]. n  M. J; gBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
+ M! }4 }" Y0 J/ D) U( _' J7 Acompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
- F0 b7 @2 |* L0 y( D& Lcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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5 t$ J* b- J$ `0 KRecently OPEC reduced crude oil production twice over just a few
! Y, K- q! I+ Smonths. There are three wars going on in Gaza, Iraq and Afghandistan.
( c1 h9 [" x6 U0 z) z. U) Y* TA year ago these things would have spiked the price of crude oil by at
; e- f4 ~' H1 [- e5 V5 Kleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
5 S3 [9 @! [+ J) E( b2 \of so much news. These reasons are:
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+ a  |" i4 q0 R' M- `
1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


; X: B2 P$ S3 o3 L3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


* i0 ]% H  ^+ |5 @- D" x! e4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
( S& W# Y4 c) B* t  Gracing to produce bio fuels.

) N! m/ M% v# T; @- D( I. C
' t2 L% m+ a( X" @( ]5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
' g% n% e2 @8 u3 B" q& q

, r& g6 b- K: ^" n: B. \6. There are 99 nuclear reactors in various stages of planning and
- H; t! z9 @9 j: R) Lconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
. r2 W9 O/ @) n/ Eolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
. E8 z: m. r( ]4 S  L' a' [are experiencing 20% to 25% better fuel econony with the new
equipment.

8 ]- m3 O; v+ i) p( D2 X
2 z  @) t7 A* S6 u, h7 [2 V* ^Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
' c3 x) R/ n# P; p" S) Savailable at very little cost or risk. The gas is displacing crude
  J$ R7 B1 J3 L, d1 `. h- {oil.
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! r$ V" _% b) s
9. Coal is being transformed into a clean burning liquid fuel. The CO2
  T8 d' ~" S& Z# \6 ]  Q/ ?produced as a byproduct is sold to oil companies for injection into
: x1 H8 Q7 a; i/ i( B3 K! zoil wells.

2 X: N1 @6 o' X& J" C8 ]
7 U; M) S" O3 K7 L, w2 k10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
& C* x# J' `. o5 n- `/ Gprice of crude oil but the sum of all of them together is world
+ x: P2 U; x. N  U6 S" Ychanging. The important thing is that OPEC no longer has the ability
, D2 O- a" ]6 M* L( j$ x6 l, uto control oil prices.


4 T0 K7 h1 t4 f, UWith the above scenario, I still believe that there are under
3 t  K1 V1 s. J! Rperformed OIL companies and probably they are yet to get the justified
: _1 n$ d! I2 [value .....
; y) f: S1 R5 z: j2 O+ P3 C/ tIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only